Case Study of U.S. Stroller

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Case Study
U.S. Stroller

U.S. Stroller is a leader in the production and sales baby strollers in the United States. U.S. Stroller has made very high quality strollers that sell at a premium price. The company is well known for its innovative designs and its good distribution system. U.S. Strollers are sold through major department stores. 2000 different sites in the United States distribute the company’s products. U.S Stroller has been a market leader for over 50 years. It has 40 percent of the U.S. market, Graco, which is a competitor, has 20 percent of the market, and Kolcraft has 10 percent of the market. Less than 10 percent have the remainder of the market including a couple of the Japanese companies that have just entered the U.S. market. The Japanese companies seem to be selling a low-price stroller that emphasizes quality and reliability of design. The strollers itself consists of from 20 to 30 different parts. The frame is made out of chrome-plated tubing. Wheels for the strollers are bought from an outside vendor and attached to the tube frames. The padded seats and backs are also purchased from outside. The strollers have a plywood insert inside the seat and in the back to give added strength. Fifty percent of the cost of the stroller consists of materials purchased from outside. The plant layout has several work centers, work centers that include tube-cutting machines with six tube-cutting machines. After the tubes are cut, they are placed in tube inventory until they are needed. The drilled tubes are then put back into inventory until they are needed by final assembly. Final assembly consists of one assembly line used for all three types of strollers. This assembly line is changed over from one model to the next model accordingly. An MRP system is used to plan and control inventories, and therefore a master production schedule is prepared on a weekly basis for eight weeks in the future. New orders are only placed...
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